Colorado is among the four states where starter homes are least attainable for non-homeowner households, according to a LendingTree report [1].
The findings highlight a growing gap between average wages and housing costs, making it increasingly difficult for first-time buyers to enter the market.
Nationwide, the research indicates that fewer than four in 10 non-homeowner households can afford a starter home [2]. This trend suggests that the majority of the U.S. rental population is currently priced out of entry-level homeownership.
In Colorado, the barrier to entry is particularly high. The state ranks fourth in the nation for the lowest attainability of starter homes [1]. This ranking places Colorado among the most challenging environments for those attempting to transition from renting to owning.
Financial requirements for these homes have climbed significantly. To purchase a starter home in Colorado, a household requires an annual income of $121,598 [1].
The report was released in 2024 to identify regional disparities in the housing market [1]. By focusing on non-homeowner households, the data isolates the specific struggle of those who do not already possess home equity to leverage for a new purchase.
“Fewer than four in 10 non-homeowner households nationwide can afford a starter home”
The high income threshold required for entry-level homes in Colorado suggests that traditional 'starter homes' are no longer accessible to the average worker. When the required income exceeds six figures for the most basic tier of housing, it indicates a systemic failure in housing supply or a significant decoupling of local wages from real estate values, potentially pushing the workforce further from urban centers.
